5 Simple Ways to Reduce Your Hot Water Costs
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5 Simple Ways to Reduce Your Hot Water Costs

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Upgrading Your Hot Water System

Energy efficiency has become a major focus for manufacturers in recent years and as such, newer hot water systems tend to be more energy efficient than older appliances. If your water heater is nearing the end of its lifespan, consider upgrading it to a newer, more energy-efficient system.

The newer appliances achieve these efficiency improvements in a number of ways including high efficient storage tanks, improved burners or heating elements and better usage of timers and thermostats. Heat traps have also been incorporated in the design of new tanks to improve efficiency. Coupled with insulation on pipework, heat is effectively trapped within the tank, preventing static heat losses.

High efficiency storage tanks

High efficiency storage tanks are designed to minimize standby heat loss. Older systems often have little or no insulation, which leads to heat loss through the tank walls and pipes, requiring the system to use more energy to maintain the desired water temperature. The reduction in heat loss results in requiring less energy to reheat the water.

Heating elements

Newer systems have more efficient heating elements or burners that can quickly heat the water and minimize energy waste.

System timers

Newer hot water systems may have features like timers and thermostats that allow homeowners to customize the system’s operation and only heat water when it is needed, saving energy and reducing costs.

New heating technologies

Heat pump hot water systems are an energy-efficient alternative to a standard electric storage system. A heat pump system will be more expensive to install however, these are becoming increasingly popular. See our full analysis of the future of heat pump hot water systems in Queensland (https://www.conradmartens.com.au/blog/types-of-hot-water-system/).

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Reduce Hot Water Usage

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By implementing these simple strategies, homeowners can reduce hot water usage and lower their energy bills, while still maintaining a comfortable and convenient lifestyle. Not only does following these few steps reduce the cost of running your hot water system, but you are also contributing to an environmentally sustainable future.

Insulate Your Hot Water System Pipe Work, Valves and Fittings

Insulating your hot water system can provide cost benefits in a number of ways:

  1. Reduced heat loss: Ensuring hot water is kept at the desired temperature for longer means your hot water system doesn’t have to work as hard to maintain the temperature, resulting in lower energy bills.
  2. Faster hot water delivery: Insulating the pipes leading to and from your hot water system can help hot water arrive at the taps faster, reducing wasted water before reaching the desired temperature.
  3. Longer lifespan: As the system doesn’t have to work as hard to maintain the temperature, reducing wear and tear.

There are a number of different insulation materials available for insulating a hot water system in Australia. Each have their own positives and negatives. When insulating your hot water system, it is important that your licence plumber meets the appropriate Australian standards for thermal insulation (AS/NZS3500.4:2021) and considers other factors (such as cost and durability) to determine what is required for your installation.

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Use Solar Hot Water

Solar energy can be used to produce hot water in two ways. A solar hot water system uses the sun’s energy to directly heat a hot water system or regular solar cells produce energy for the house which is also supplied to the electric hot water system. If you are considering installing a new solar hot water system, we have a report available that compares the two different types of solar systems and the cost and benefits associated with each. (https://www.conradmartens.com.au/blog/solar-electric-vs-solar-hot-water/).

In general, the costs of installing a new solar hot water system on an existing house will often out way the energy cost benefits over time. However, customers with existing solar PV Panels often ask how they can use this solar system to minimise the cost of running their hot water system. Thankfully, there are some great steps that can be taken to do this.

Hot water system timers control when your hot water system operates, helping you to save energy and reduce your electricity bills. Installing a timer on your system and configuring it so that water is only heated during the day while your solar PV system is producing plenty of electricity is a great way to reduce the running costs of your hot water system using an existing solar PV system.

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Maintain Your Hot Water System

A dripping faucet or a leaky pipe might seem like a minor issue, but over time, it can waste a significant amount of hot water and add to your utility bills. Regularly check for leaks and promptly fix any issues to avoid wasting water and energy. Our ultimate guide to hot water systems can assist you in recognising the regular maintenance task required for a hot water system as well as knowing what you can complete yourself or might need a licenced plumber to complete. (https://www.conradmartens.com.au/blog/a-guide-to-hot-water-systems/).

Adjusting the water temperature on your water heater can help save energy without compromising your comfort. For most households, a temperature setting of 50 degrees Celsius is sufficient for daily needs. Higher temperatures not only waste energy but can also pose a scalding risk. (Once Hot Water temperatures is posted add link with – Our post on Hot Water temperatures has everything you need to know about setting the temperature on your water heater system.)


Reducing hot water costs doesn’t have to be a daunting task. Implementing these strategies can you save money while contributing to a more sustainable future. Start making changes today or contact a licenced hot water specialist for assistance so that you can enjoy the benefits of lower hot water costs today.

Yours in keeping the good life flowing!


The Conrad Martens Team

(07) 3878 4444

For the best price, service and advice!

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